Property trust tops the league table

SOARING demand for commercial property has propelled the Trust of Property Shares to the top of the investment trust league table for 2004. The trust, one of around 10 specialising in the property market, was the best performer during the year, making £63.9 for every £100 invested. It was launched 25 years ago and is currently managed by Adam Cohen.

Hansa Trust, Artemis Alpha also featured in the top performers list in 2004, earning returns of around 60%.

The Taverners Trust, which invests specifically in breweries, pubs and restuarants was the fourth top Association of Investment Trust Companies member, up 48%, bouyed by the Government's new measures on licensing reform.

The average AITC member conventional trust was up 13% over the year, while investment trust companies' borrowing fell to 11% from 14% last year.

AITC communications director Annabel Brodie-Smith said: '2004 was a good year for AITC Member investment trust shareholders, particularly those invested in the smaller companies sectors. Whilst the FTSE All Small Index was up 14% over the year, the average UK smaller companies investment trust was up 31%.'

Both UK and European small company trusts performed well in 2004, but trusts invested in the Far East struggled.

Brodie-Smith added: 'Performance trends change and are only a measure of what is happening in the market place at one particular time. That is why it is so important that investors do their homework and look at a whole range of criteria when assessing a trust.'

Average discounts, the level to which an investment trust’s share price is below the value of its underlying assets, narrowed by around 1% during the year to 10%.